LAVAL, Quebec, April 29, 2015 /PRNewswire/ --
2015 First Quarter Results
- Total Revenue $2.2 billion; an
increase of 16% over the prior year despite negative foreign
exchange impact of $140 million
- Excluding negative impact of foreign exchange and last
year's divestiture of the aesthetics injectable business, revenue
increased 27% over the prior year
- Same Store Sales Organic Growth was 15%, driven by:
- Growth from launch brands, including BioTrue Multipurpose
Solution, BioTrue ONEday Contact Lens, Jublia, Luzu, and Ultra
Contact Lens
- Double digit growth in U.S. businesses such as Contact Lens,
Dermatology, Neurology and Other, Obagi, and Oral Health
- Double digit growth in many Emerging Markets including
Asia, Mexico, the Middle
East, and Poland
- GAAP EPS $0.21; Cash EPS
$2.36, an increase of 34% despite
negative foreign exchange impact of $0.12 over the prior year
- Excluding negative impact of foreign exchange and last
year's divestiture of the aesthetics injectable business, Cash EPS
increased 50% over the prior year
- GAAP Operating Cash Flow $491
million; Adjusted Operating Cash Flow $708 million
- As projected, restructuring, integration and other
acquisition related costs for pre-2015 transactions were less than
$25 million
- Salix and Dendreon integrations largely complete
- Salix to exceed $530 million
in synergies and will achieve $500
million run rate synergies by the end of Q2
- Dendreon, profitable in Q1, to exceed $130 million in synergies and achieve 90% run
rate by year-end
- Valeant currently in labeling discussions with the FDA
regarding IBS-D indication for Xifaxan, ahead of the May 28, 2015 PDUFA date
2015 Guidance
- Increasing Total Revenue to $10.4 -
$10.6 billion up from $9.2 - $9.3
billion
- Expect Salix Revenue of ~$1.0
billion in 2015
- Reflects implementation of wholesaler inventory reduction
program; plan to reduce Salix wholesaler inventory levels to
approximately 1.5 months by year-end
- Increasing Cash EPS to $10.90 -
$11.20 per share up from $10.10 -
$10.40
- Expect Same Store Sales Organic Growth of >10% for the
second through fourth quarters of 2015
Second Quarter 2015 Guidance
- Total Revenue $2.45 - $2.55
billion
- Cash EPS $2.40 - $2.50 per
share
- Reflects significant inventory work down of Salix products
at the wholesalers
2016 Outlook
- Accretion from Salix acquisition will be greater than 20% in
2016 and EBITDA expected to exceed $7.5
billion in 2016
Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX:
VRX) announces first quarter financial results for 2015.
"Our first quarter results demonstrate the strong performance of
our diversified business model as we exceeded our first quarter
guidance despite losing $140 million
in revenue and $0.12 in Cash EPS to
foreign exchange headwinds," stated J.
Michael Pearson, chairman and chief executive officer.
"The Company delivered exceptional double digit organic growth for
the third quarter in a row, driven by the strength of most of our
business units around the world."
Conference Call and Webcast Information
The Company will host a conference call and a live Internet
webcast along with a slide presentation today at 8:00 a.m. ET (5:00 a.m.
PT), April 29, 2015 to discuss
its first quarter financial results for 2015. The dial-in number to
participate on this call is (877) 876-8393 confirmation code
20635721. International callers should dial (973) 200-3961,
confirmation code 20635721. A replay will be available
approximately two hours following the conclusion of the conference
call through May 6, 2015 and can be
accessed by dialing (855) 859-2056, or (404) 537-3406, confirmation
code 20635721. The live webcast of the conference call may be
accessed through the investor relations section of the Company's
corporate website at www.valeant.com.
About Valeant
Valeant Pharmaceuticals International, Inc. (NYSE/TSX:VRX) is a
multinational specialty pharmaceutical company that develops,
manufactures and markets a broad range of pharmaceutical products
primarily in the areas of dermatology, eye health, neurology and
branded generics. More information about Valeant can be found at
www.valeant.com.
Forward-looking Statements
This press release may contain forward-looking statements,
including, but not limited to, statements regarding the expected
integration of the Dendreon Corporation and Salix Pharmaceuticals,
Ltd. ("Salix") businesses, the amount and timing of expected
synergies, and our expected future performance, including 2015
guidance with respect to revenue, Cash EPS and organic growth, our
inventory reduction program, and our outlook with respect to
performance in 2016. Forward-looking statements may generally
be identified by the use of the words "anticipates," "expects,"
"intends," "plans," "should," "could," "would," "may," "will,"
"believes," "estimates," "potential," "target," or "continue" and
variations or similar expressions. These statements are based upon
the current expectations and beliefs of management and are subject
to certain risks and uncertainties that could cause actual results
to differ materially from those described in the forward-looking
statements. These risks and uncertainties include, but are not
limited to, risks and uncertainties discussed in the Company's most
recent annual or quarterly report and detailed from time to time in
Valeant's other filings with the Securities and Exchange Commission
and the Canadian Securities Administrators, which factors are
incorporated herein by reference. Readers are cautioned not to
place undue reliance on any of these forward-looking statements.
These forward-looking statements speak only as of the date hereof.
Valeant undertakes no obligation to update any of these
forward-looking statements to reflect events or circumstances after
the date of this press release or to reflect actual outcomes.
Non-GAAP Information
To supplement the financial measures prepared in accordance with
U.S. generally accepted accounting principles (GAAP), the company
uses non-GAAP financial measures that exclude certain items, such
as amortization of inventory step-up, amortization of alliance
product assets & property, plant and equipment step up,
stock-based compensation step-up, contingent consideration fair
value adjustments, restructuring, acquisition-related and other
costs, In-process research and development, impairments and other
charges, ("IPR&D"), legal settlements outside the ordinary
course of business, the impact of currency fluctuations,
amortization and other non-cash charges, amortization including
intangible asset impairments and write-down of deferred financing
costs, debt discounts and ASC 470-20 (FSP APB 14-1) interest, loss
on extinguishment of debt, (gain) loss on assets sold/held for
sale/impairment, net, (gain) loss on investments, net, and adjusts
tax expense to cash taxes. Management uses non-GAAP financial
measures internally for strategic decision making, forecasting
future results and evaluating current performance. By disclosing
non-GAAP financial measures, management intends to provide
investors with a meaningful, consistent comparison of the company's
core operating results and trends for the periods presented.
Non-GAAP financial measures are not prepared in accordance with
GAAP. Therefore, the information is not necessarily
comparable to other companies and should be considered as a
supplement to, not a substitute for, or superior to, the
corresponding measures calculated in accordance with GAAP.
Contact Information:
Laurie W. Little
949-461-6002
laurie.little@valeant.com
Media:
Renee E. Soto/Meghan Gavigan
Sard Verbinnen & Co.
212-687-8080
rsoto@sardverb.com /
mgavigan@sardverb.com
Financial Tables follow.
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
Table
1
|
Condensed
Consolidated Statements of Income (Loss)
|
|
|
|
|
For the Three
Months Ended March 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
(In
millions)
|
|
2015
|
|
2014
|
|
|
|
|
|
Product
sales
|
|
$ 2,146.9
|
|
$ 1,851.1
|
Other
revenues
|
|
44.0
|
|
35.1
|
Total
revenues
|
|
2,190.9
|
|
1,886.2
|
|
|
|
|
|
Cost of goods sold
(exclusive of amortization and impairments of finite-lived
intangible assets shown separately below)
|
|
560.4
|
|
504.1
|
Cost of other
revenues
|
|
14.3
|
|
14.3
|
Selling, general and
administrative ("SG&A")
|
|
573.8
|
|
482.0
|
Research and
development
|
|
55.8
|
|
61.3
|
Acquisition-related
contingent consideration
|
|
7.1
|
|
8.9
|
In-process research
and development impairments and other charges
|
|
-
|
|
12.0
|
Other
(income)/expense
|
|
6.1
|
|
(43.3)
|
Restructuring,
integration, acquisition-related and other costs
|
|
64.8
|
|
135.1
|
Amortization and
impairments of finite-lived intangible assets
|
|
365.2
|
|
355.2
|
|
|
1,647.5
|
|
1,529.6
|
Operating income
(loss)
|
|
543.4
|
|
356.6
|
|
|
|
|
|
Interest expense,
net
|
|
(296.9)
|
|
(244.7)
|
Loss on
extinguishment of debt
|
|
(20.0)
|
|
(93.7)
|
Foreign exchange and
other
|
|
(71.1)
|
|
(13.4)
|
|
|
|
|
|
Income (loss) before
(recovery of) provision for income taxes
|
|
155.4
|
|
4.8
|
|
|
|
|
|
(Recovery of)
provision for income taxes
|
|
80.9
|
|
25.1
|
|
|
|
|
|
Net income
(loss)
|
|
74.5
|
|
(20.3)
|
|
|
|
|
|
Less: Net
income (loss) attributable to noncontrolling interest
|
|
0.8
|
|
2.3
|
|
|
|
|
|
Net income (loss)
attributable to Valeant Pharmaceuticals International,
Inc.
|
|
$ 73.7
|
|
$ (22.6)
|
|
|
|
|
|
Earnings (loss)
per share:
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
Earnings
(loss)
|
|
$ 0.22
|
|
$ (0.07)
|
Shares used in per
share computation
|
|
336.8
|
|
334.9
|
|
|
|
|
|
Diluted:
|
|
|
|
|
Earnings
(loss)
|
|
$ 0.21
|
|
$ (0.07)
|
Shares used in per
share computation
|
|
343.4
|
|
334.9
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
Table
2
|
Reconciliation of
GAAP EPS to Cash EPS
|
|
|
|
|
For the Three
Months Ended March 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
(In
millions)
|
|
2015
|
|
2014
|
|
|
|
|
|
Net income (loss)
attributable to Valeant Pharmaceuticals International,
Inc.
|
|
$ 73.7
|
|
$ (22.6)
|
|
|
|
|
|
Non-GAAP
adjustments (a):
|
|
|
|
|
Inventory step-up
(b)
|
|
24.5
|
|
5.3
|
PP&E step-up/down
(c)
|
|
6.5
|
|
4.9
|
Stock-based
compensation (d)
|
|
8.5
|
|
6.0
|
Acquisition-related
contingent consideration (e)
|
|
7.1
|
|
8.9
|
In-process research
and development impairments and other charges (f)
|
|
-
|
|
12.0
|
Other
(income)/expense (g)
|
|
6.1
|
|
(43.3)
|
Restructuring,
integration, acquisition-related and other costs (h)
|
|
64.8
|
|
135.1
|
Amortization and
impairments of finite-lived intangible assets and other non-GAAP
charges (i)
|
|
368.5
|
|
364.1
|
|
|
486.0
|
|
493.0
|
Amortization of
deferred financing costs, debt discounts and ASC 470-20 (FSP APB
14-1) interest (j)
|
|
90.5
|
|
12.2
|
Loss on
extinguishment of debt
|
|
20.0
|
|
93.7
|
(Gain) loss on
disposal of fixed assets and assets held for sale/impairment,
net
|
|
0.5
|
|
0.8
|
Foreign exchange and
other (k)
|
|
76.0
|
|
12.6
|
Tax (l)
|
|
62.6
|
|
10.0
|
Total
adjustments
|
|
735.6
|
|
622.3
|
|
|
|
|
|
Adjusted net income
attributable to Valeant Pharmaceuticals International,
Inc.
|
|
$ 809.3
|
|
$ 599.7
|
|
|
|
|
|
GAAP earnings (loss)
per share - diluted
|
|
$ 0.21
|
|
$ (0.07)
|
|
|
|
|
|
Cash earnings per
share - diluted
|
|
$ 2.36
|
|
$ 1.76
|
|
|
|
|
|
Shares used in
diluted per share calculation - Cash earnings per share
|
|
343.4
|
|
341.5
|
|
|
|
|
|
(a) See footnote (a)
to Table 2a.
|
|
|
|
|
(b) See footnote (b)
to Table 2a.
|
|
|
|
|
(c) See footnote (c)
to Table 2a.
|
|
|
|
|
(d) See footnote (d)
to Table 2a.
|
|
|
|
|
(e) See footnote (e)
to Table 2a.
|
|
|
|
|
(f) See footnote (f)
to Table 2a.
|
|
|
|
|
(g) See footnote (g)
to Table 2a.
|
|
|
|
|
(h) See footnote (h)
(i) to Table 2a.
|
|
|
|
|
(i) See footnote (c)
to Table 2a.
|
|
|
|
|
(j) See footnote (j)
to Table 2a.
|
|
|
|
|
(k) See footnote (k)
to Table 2a.
|
|
|
|
|
(l) See footnote (l)
to Table 2a.
|
|
|
|
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
Table
2a
|
|
Reconciliation of
GAAP EPS to Cash EPS
|
|
|
|
|
|
For the Three
Months Ended March 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments(a)for
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
(In
millions)
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Product
sales
|
|
$ -
|
|
$
-
|
|
Other
revenues
|
|
-
|
|
-
|
|
Total
revenues
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Cost of goods sold
(exclusive of amortization and impairments of finite-lived
intangible assets shown separately below)
|
|
(34.0)
|
(b)(c)
|
(19.6)
|
(b)(c)
|
Cost of other
revenues
|
|
-
|
|
-
|
|
Selling, general and
administrative ("SG&A")
|
|
(9.0)
|
(d)
|
(6.0)
|
(d)
|
Research and
development
|
|
(0.3)
|
|
(0.3)
|
|
Acquisition-related
contingent consideration
|
|
(7.1)
|
(e)
|
(8.9)
|
(e)
|
In-process research
and development impairments and other charges
|
|
-
|
|
(12.0)
|
(f)
|
Other
income/(expense)
|
|
(6.1)
|
(g)
|
43.3
|
(g)
|
Restructuring,
integration, acquisition-related and other costs
|
|
(64.8)
|
(h)
|
(135.1)
|
(i)
|
Amortization and
impairments of finite-lived intangible assets
|
|
(365.2)
|
|
(355.2)
|
|
|
|
(486.5)
|
|
(493.8)
|
|
Operating income
(loss)
|
|
486.5
|
|
493.8
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
90.5
|
(j)
|
12.2
|
(j)
|
Loss on
extinguishment of debt
|
|
20.0
|
|
93.7
|
|
Foreign exchange and
other
|
|
76.0
|
(k)
|
12.6
|
(k)
|
|
|
|
|
|
|
Income (loss) before
(recovery of) provision for income taxes
|
|
673.0
|
|
612.3
|
|
|
|
|
|
|
|
(Recovery of)
provision for income taxes
|
|
62.6
|
(l)
|
10.0
|
(l)
|
|
|
|
|
|
|
Total adjustments to
net income (loss) attributable to Valeant Pharmaceuticals
International, Inc.
|
|
$ 735.6
|
|
$ 622.3
|
|
|
|
|
|
|
|
Earnings (loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
Total adjustments to
earnings (loss)
|
|
$ 2.14
|
|
$ 1.82
|
|
Shares used in per
share computation
|
|
343.4
|
|
341.5
|
|
|
(a) To supplement the
financial measures prepared in accordance with U.S. generally
accepted accounting principles (GAAP), the company uses non-GAAP
financial measures that exclude certain items, such as amortization
of inventory step-up, amortization of alliance product assets &
property, plant and equipment step up, stock-based compensation
step-up, contingent consideration fair value adjustments,
restructuring, integration, acquisition-related and other costs,
In-process research and development, impairments and other charges,
("IPR&D"), legal settlements outside the ordinary course of
business, the impact of currency fluctuations, amortization
including intangible asset impairments and other non-cash charges,
amortization and write-down of deferred financing costs, debt
discounts and ASC 470-20 (FSP APB 14-1) interest, loss on
extinguishment of debt, (gain) loss on assets sold/held for
sale/impairment, net, (gain) loss on investments, net, and adjusts
tax expense to cash taxes.
|
|
Management uses
non-GAAP financial measures internally for strategic decision
making, forecasting future results and evaluating current
performance. By disclosing non-GAAP financial measures, management
intends to provide investors with a meaningful, consistent
comparison of the company's core operating results and trends for
the periods presented. Non-GAAP financial measures are not prepared
in accordance with GAAP. Therefore, the information is not
necessarily comparable to other companies and should be considered
as a supplement to, not a substitute for, or superior to, the
corresponding measures calculated in accordance with
GAAP.
|
|
(b) ASC 805, Business
Combinations, requires an inventory fair value step-up whose total
impact for the three months ended March 31, 2015 is $24.5 million
primarily due to the acquisition of Marathon Pharmaceuticals, LLC
on February 10, 2015. For the three months ended March 31, 2014 the
impact of inventory fair value step-up is $5.3 million primarily
due to the acquisition of Solta Medical, Inc. on January 23, 2014
and net of a measurement period adjustment relating to the
acquisition of Bausch & Lomb Holdings Incorporated on August 5,
2013.
|
|
(c) For the three
months ended March 31, 2015 and 2014, cost of goods sold include
$3.3 million and $7.7 million, respectively, of costs associated
with integration related tech transfers, PP&E step up of $6.2
million and $5.1 million, respectively, primarily relating to the
acquisition of Bausch & Lomb Holdings Incorporated. For the
three months ended March 31, 2014, cost of goods sold also includes
$1.5 million amortization of a BMS fair value inventory
adjustment.
|
|
(d) For the three
months ended March 31, 2015, SG&A primarily includes $8.5
million of stock-based compensation which reflects acceleration of
certain equity instruments. For the three months ended March 31,
2014, SG&A primarily includes $6.0 million of stock-based
compensation which reflects acceleration of certain equity
instruments and the amortization of the fair value step-up
increment resulting from the merger of Legacy Valeant into Legacy
Biovail.
|
|
(e) Net
expense/(income) from the changes in acquisition-related contingent
consideration for the three months ended March 31, 2015 and 2014 is
$7.1 million and $8.9 million, respectively.
|
|
(f) In-process
research and development impairments and other charges for the
three months ended March 31, 2014 of $12.0 million is primarily due
to an upfront payment made in connection with an amendment to a
license and distribution agreement with a third party.
|
|
(g) For the three
months ended March 31, 2015, other (income)/expense of $6.1 million
primarily relates to additional expenses related to the divestiture
of filler and toxin assets and legal settlements and related fees.
For the three months ended March 31, 2014, other (income)/expense
of ($43.3) million primarily relates to the reversal of the
AntiGrippin® litigation reserve of $50.0 million, partially offset
by $5.6 million expense related to a settlement of a preexisting
relationship with respect to the acquisition of Solta Medical,
Inc.
|
|
(h) Restructuring,
integration, acquisition-related and other costs of $64.8 million
primarily relates to the acquisitions of Dendreon Corporation,
Bausch & Lomb Holdings Incorporated, Medicis Pharmaceutical
Corporation, Marathon Pharmaceuticals, LLC and Salix
Pharmaceuticals, Ltd. These include $24.8 million of contract
terminations, integration consulting, transition services,
duplicative labor and other, $24.8 million of employee severance
costs, $9.8 million of acquisition costs, $3.1 million of other,
$1.6 million of facility closure costs and $0.7 million of
non-personnel manufacturing integration costs.
|
|
(i) Restructuring,
integration, acquisition-related and other costs of $135.1 million
primarily relates to the acquisitions of Bausch & Lomb Holdings
Incorporated, Solta Medical, Inc., other Valeant restructuring and
integration initiatives and OnPharma Inc. These include $73.6
million of contract terminations, integration consulting,
transition services, duplicative labor and other, $33.8 million of
employee severance costs, $13.3 million of facility closure costs,
$7.7 million of other, $3.5 million of stock-based compensation,
$1.7 million of non-personnel manufacturing integration costs and
$1.5 million of acquisition costs.
|
|
(j) Non-cash interest
expense associated with amortization of deferred financing costs
and debt discounts for the three months ended March 31, 2015 and
2014 is $10.5 million and $12.2 million, respectively. The three
months ended March 31, 2015 also includes $72.0 million write-down
of deferred finance costs and $8.0 million of interest expense
resulting from the acquisition of Salix Pharmaceuticals,
Ltd.
|
|
(k) Unrealized
foreign exchange loss on intercompany financing arrangements for
the three months ended March 31, 2015 and 2014 is $49.4 million and
$12.6 million, respectively. The three months ended March 31, 2015
also includes unrealized foreign exchange loss of $26.6M relating
to foreign currency forward-exchange contracts.
|
|
(l) Total tax effect
of non-GAAP pre-tax adjustments, resolution of uncertain tax
positions and change in deferred taxes.
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
Table
3
|
Statement of
Revenues - by Segment
|
|
|
|
|
For the Three
Months Ended March 31, 2015 and 2014
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
Revenues(a)(b)
|
|
2015
GAAP
|
|
2014
GAAP
|
|
%
Change
|
|
2015 currency
impact
|
|
2015 excluding
currency impact
non-GAAP
|
|
%
Change
|
Dermatology
|
|
$ 419.3
|
|
$ 304.2
|
|
38%
|
|
$ -
|
|
$ 419.3
|
|
38%
|
Consumer
|
|
155.5
|
|
144.0
|
|
8%
|
|
-
|
|
155.5
|
|
8%
|
Ophthalmology
Rx
|
|
129.1
|
|
99.3
|
|
30%
|
|
-
|
|
129.1
|
|
30%
|
Contact
Lenses
|
|
47.7
|
|
40.9
|
|
17%
|
|
-
|
|
47.7
|
|
17%
|
Surgical
|
|
48.1
|
|
48.3
|
|
0%
|
|
-
|
|
48.1
|
|
0%
|
Neuro &
Other/Generics
|
|
539.1
|
|
351.5
|
|
53%
|
|
-
|
|
539.1
|
|
53%
|
Dental
|
|
34.8
|
|
18.2
|
|
91%
|
|
-
|
|
34.8
|
|
91%
|
Oncology
|
|
30.1
|
|
-
|
|
|
|
-
|
|
30.1
|
|
|
Total
U.S.
|
|
1,403.7
|
|
1,006.4
|
|
39%
|
|
-
|
|
1,403.7
|
|
39%
|
ROW
Developed
|
|
360.7
|
|
415.4
|
|
-13%
|
|
62.0
|
|
422.7
|
|
2%
|
Developed
Markets
|
|
1,764.4
|
|
1,421.8
|
|
24%
|
|
62.0
|
|
1,826.4
|
|
28%
|
Emerging
Markets-Europe/Middle East
|
|
212.1
|
|
248.7
|
|
-15%
|
|
60.1
|
|
272.2
|
|
9%
|
Emerging Markets-Latin
America
|
|
89.0
|
|
99.3
|
|
-10%
|
|
14.0
|
|
103.0
|
|
4%
|
Emerging
Markets-Asia
|
|
125.4
|
|
116.4
|
|
8%
|
|
3.5
|
|
128.9
|
|
11%
|
Emerging
Markets
|
|
426.5
|
|
464.4
|
|
-8%
|
|
77.6
|
|
504.1
|
|
9%
|
Total
revenues
|
|
$ 2,190.9
|
|
$ 1,886.2
|
|
16%
|
|
$ 139.6
|
|
$ 2,330.5
|
|
24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Note: Currency
effect for constant currency sales is determined by comparing 2015
reported amounts adjusted to exclude currency impact, calculated
using 2014 monthly average exchange rates, to the actual 2014
reported amounts. Constant currency sales is not a GAAP-defined
measure of revenue growth. Constant currency sales as defined and
presented by us may not be comparable to similar measures reported
by other companies.
|
|
|
|
(b) See footnote (a)
to Table 2a.
|
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
Table
4
|
Reconciliation of
GAAP Cost of Goods Sold to Non-GAAP Cost of Goods Sold - by
Segment
For the Three Months
Ended March 31, 2015
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.1
|
Cost of goods sold
(a)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2015
as reported
GAAP
|
|
%
of product sales
|
|
2015
fair value step-up adjustment to inventory and other
non-GAAP (b)
|
|
2015 excluding
fair value step-up adjustment to inventory and other
non-GAAP
|
|
%
of product sales
|
|
Developed
Markets
|
|
$ 397.6
|
|
23%
|
|
$
32.1
|
|
$ 365.5
|
|
21%
|
|
Emerging
Markets
|
|
162.8
|
|
39%
|
|
1.9
|
|
160.9
|
|
39%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 560.4
|
|
26%
|
|
$
34.0
|
|
$ 526.4
|
|
25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See footnote (a)
to Table 2a.
|
(b) Developed Markets
include $24.5 million of fair value step-up adjustment to
inventory, PP&E net step up adjustment of $5.7 million and $1.9
million of integration related tech transfer costs. Emerging
Markets include $1.4 million of integration related tech transfer
costs and $0.5 million of PP&E step up adjustment.
|
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
|
|
Table
5
|
|
Consolidated
Balance Sheet and Other Data
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
As
of
|
|
As
of
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
5.1
|
Cash
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 1,864.4
|
|
$
322.6
|
|
|
|
|
Marketable
securities
|
-
|
|
-
|
|
|
|
|
Total cash and
marketable securities
|
$ 1,864.4
|
|
$
322.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revolving Credit
Facility
|
$ 225.0
|
|
$
165.0
|
|
|
|
|
Series A-1 Tranche A
Term Loan Facility
|
139.1
|
|
139.6
|
|
|
|
|
Series A-2 Tranche A
Term Loan Facility
|
135.3
|
|
135.7
|
|
|
|
|
Series A-3 Tranche A
Term Loan Facility
|
1,877.3
|
|
1,637.9
|
|
|
|
|
Series D-2 Tranche B
Term Loan Facility
|
1,084.1
|
|
1,089.7
|
|
|
|
|
Series C-2 Tranche B
Term Loan Facility
|
834.0
|
|
838.3
|
|
|
|
|
Series E-1 Tranche B
Term Loan Facility
|
2,529.5
|
|
2,544.9
|
|
|
|
|
Senior
Notes
|
19,184.2
|
|
8,690.8
|
|
|
|
|
Other
|
12.2
|
|
12.7
|
|
|
|
|
|
26,020.7
|
|
15,254.6
|
|
|
|
|
Less: current
portion
|
(122.8)
|
|
(0.9)
|
|
|
|
|
Total long-term
debt
|
$ 25,897.9
|
|
$ 15,253.7
|
|
|
|
|
|
|
|
|
|
|
|
5.2
|
Summary of Cash
Flow Statements
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
Cash flow provided by
(used in):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities (GAAP)
|
$ 491.1
|
|
$
484.3
|
|
|
|
|
Restructuring,
integration and acquisition-related costs (c)
|
64.8
|
|
135.1
|
|
|
|
|
Payment of accrued
legal settlements
|
3.0
|
|
-
|
|
|
|
|
Tax benefit from
stock options exercised (a)
|
17.9
|
|
1.2
|
|
|
|
|
Acquired in-process
research and development
|
-
|
|
12.0
|
|
|
|
|
Working capital
change related to business development activities
|
130.6
|
|
-
|
|
|
|
|
Changes in working
capital related to restructuring, integration and
acquisition-related costs(c)
|
0.7
|
|
3.7
|
|
|
|
|
Adjusted cash flow
from operations (Non-GAAP) (b)
|
$ 708.1
|
|
$
636.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes stock
option tax benefit which will reduce taxes in future
periods.
|
|
|
|
|
(b) See footnote (a)
to Table 2a.
|
|
|
|
|
(c) Total
restructuring, integration and acquisition-related costs cash
payments of $65.5 million are broken down as follows:
|
|
|
|
|
Project
Type
|
Cash
Paid
|
|
Expensed
|
|
|
|
|
|
|
|
|
|
|
|
|
Bausch & Lomb
Holdings Incorporated
|
22.0
|
|
8.8
|
|
|
|
|
Project
Vision/Waterford
|
15.7
|
|
0.2
|
|
|
|
|
Dendreon
Corporation
|
8.9
|
|
35.2
|
|
|
|
|
Medicis
Pharmaceutical Corporation
|
5.2
|
|
5.3
|
|
|
|
|
Europe (Various
Deals)
|
2.3
|
|
1.4
|
|
|
|
|
Intellectual property
migration
|
1.7
|
|
1.0
|
|
|
|
|
Solta Medical,
Inc.
|
1.7
|
|
1.4
|
|
|
|
|
Nicox Inc.
|
1.5
|
|
0.4
|
|
|
|
|
Manufacturing
integration (Various deals)
|
1.2
|
|
0.6
|
|
|
|
|
Precision
Dermatology
|
1.1
|
|
1.1
|
|
|
|
|
Marathon
Pharmaceuticals, LLC
|
0.3
|
|
2.8
|
|
|
|
|
Salix
Pharmaceuticals, Ltd
|
-
|
|
2.5
|
|
|
|
|
Other (Various
deals)
|
3.9
|
|
4.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
65.5
|
|
64.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
Type
|
Cash
Paid
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance
payments
|
38.9
|
|
|
|
|
|
|
Integration related
consulting, duplicative labor, transition services, and
other
|
21.1
|
|
|
|
|
|
|
Facility closure
costs, other manufacturing integration, and other
|
5.2
|
|
|
|
|
|
|
Acquisition-related
costs paid to 3rd parties
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
65.5
|
|
|
|
|
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
|
|
|
|
|
|
|
Table
6
|
|
Organic Growth -
by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
(In
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
|
|
For the
Three Months Ended March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic
growth
|
|
|
|
|
|
|
|
|
|
|
(a)
|
(b)
|
|
|
|
(b)
|
|
(b)
|
|
|
(1) Q1
2015
|
(2) Acq
impact
|
(3) Q1
2015
Same store
|
|
(4) Q1
2014
|
(5) Pro
Forma Adj
|
(6) Q1
2014
|
|
(7) Currency
impact Same store
|
(8) Currency
impact Acq
|
|
(9)
Divestitures / Discontinuations (c )
|
|
Pro Forma
(1)+(7)+(8) / (6)-(9)
(f)
|
|
Same store (3)+(7)
/ (4)-(9)
(f)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
U.S. (d)
|
1,382.4
|
196.3
|
1,186.0
|
|
997.8
|
76.1
|
1,073.9
|
|
-
|
-
|
|
58.1
|
|
36%
|
|
26%
|
|
ROW Developed
(e)
|
348.8
|
11.6
|
337.1
|
|
402.5
|
14.8
|
417.3
|
|
57.8
|
2.5
|
|
4.6
|
|
-1%
|
|
-1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Developed
Markets
|
1,731.1
|
208.0
|
1,523.2
|
|
1,400.4
|
90.8
|
1,491.2
|
|
57.8
|
2.5
|
|
62.7
|
|
25%
|
|
18%
|
|
Emerging
Markets
|
416.4
|
12.2
|
404.2
|
|
454.5
|
11.2
|
465.7
|
|
74.4
|
1.2
|
|
7.9
|
|
7%
|
|
7%
|
|
Total product
sales
|
2,147.5
|
220.2
|
1,927.3
|
|
1,854.9
|
102.0
|
1,956.9
|
|
132.2
|
3.7
|
|
70.5
|
|
21%
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Note: Currency
effect for constant currency sales is determined by comparing 2015
reported amounts adjusted to exclude currency impact, calculated
using 2014 monthly average exchange rates, to the actual 2014
reported amounts. Constant currency sales is not a GAAP-defined
measure of revenue growth. Constant currency sales as defined and
presented by us may not be comparable to similar measures reported
by other companies.
|
(b) See footnote (a)
to Table 2a.
|
(c) Includes
divestitures and discontinuations.
|
(d) Includes
Valeant's attributable portion of revenue from joint ventures (JV)
- $0.6M Q1'15 and $0.7M Q1'14.
|
(e) Includes
Valeant's attributable portion of revenue from joint ventures (JV)
- $3.1M Q1'14.
(f) Organic Growth
Definitions:
|
Same Store (SS): This measure provides growth rates
for businesses that have been owned for one year or
more.
|
|
((Current Year Total
product sales – acquisitions within the last year + YoY FX impact)-
(Prior Year Total product sales – divestitures &
discontinuations))/( Prior Year Total product sales – divestitures
& discontinuations)
|
Pro Forma (PF):
This measure provides year over year growth rates for the entire
business, including those that have been acquired within the last
year.
|
((Current Year Total
product sales + YoY FX impact + divestitures or discontinuations) –
(Prior Year Total product sales + Pro Forma impact of acquisitions
within the last year))/(Prior Year Total product sales + Pro Forma
impact of acquisitions within the last
year).
|
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SOURCE Valeant Pharmaceuticals International, Inc.